According to a report released today, nearly half of the businesses most dependent on the commodities driving deforestation – as well as the financial institutions that support them – have no deforestation policy in place to stop it.
An analysis of 350 corporations with the most exposure to palm oil, soy, beef, leather, lumber, and pulp and paper, as well as 150 banks and asset managers that lend to or invest in them, by the nonprofit Global Canopy, revealed that 201, or 40%, of them, lacked such a policy.
Global agreement to safeguard biodiversity
The countries reached a global agreement to safeguard biodiversity just a few weeks prior to the publication of its annual “Forest 500” report, and the European Union and Britain are planning stricter regulations to compel businesses to do more to stop the destruction.
Global Canopy claimed that 100 of the firms, up from 99 last year, had commitments against deforestation in place for all of the commodities to which they were exposed. However, only half of the companies checked to make sure the policies were being followed.
An additional 109 had no pledges to prevent deforestation for any of the commodities.
A corporation must have a deforestation-free certification
According to Global Canopy, a corporation must have a deforestation-free certification or a statement that it safeguards priority trees connected to the commodities it purchases or finances.
The research claimed that even though the number of businesses committing to achieve net-zero carbon emissions by the middle of the century had increased five-fold in only three years to 145, the lack of action on deforestation was impeding their capacity to reach the goal.
According to Niki Mardas, executive director of Global Canopy, now halting tropical deforestation is essential to achieving important global goals related to the environment and climate.
It is amazing that despite the fact that almost all of the Forest 500 firms have aggressive net zero ambitions, they all run the risk of falling short of them due to inaction on deforestation.
According to the research, 92 of the financial institutions that were exposed to the corporations the most did not have such a policy either, which was mostly unchanged from the previous year.
What are the consequences of deforestation?
Deforestation, the removal of trees from an area, can have a range of environmental, social, and economic consequences. Some of the main consequences of deforestation include:
- Loss of Biodiversity. – Forests are home to a vast array of plant and animal species, many of which cannot live anywhere else on earth. Deforestation destroys habitats and can lead to the extinction of many species.
- Climate Change. – Trees absorb carbon dioxide from the atmosphere and release oxygen through the process of photosynthesis. Destroying forests leads to the release of carbon dioxide into the atmosphere, which contributes to climate change.
- Soil Erosion. – Trees help to hold the soil in place, and their roots help to prevent erosion. Deforestation can lead to soil erosion, which can cause landslides and other natural disasters.
- Water Cycle Disruption. – Trees play an important role in the water cycle by absorbing water and releasing it into the atmosphere. Deforestation can disrupt this process, leading to changes in local weather patterns and potentially causing droughts.
- Increased Greenhouse Gas Emissions. – Deforestation can release large amounts of carbon stored in trees and soil, leading to increased greenhouse gas emissions and exacerbating climate change.
- Displacement of Indigenous People. – Forests are home to many Indigenous communities who rely on them for their livelihoods and cultural practices. Cutting wood can lead to the displacement of these communities.
- Economic Impacts. – Deforestation can lead to the loss of income for communities that rely on forests for their livelihoods. It can also lead to increased costs for industries that rely on forests, such as the timber industry.
Destroying forests can have significant and long-lasting impacts on the environment, society, and the economy. It is important to take steps to reduce deforestation and promote sustainable forest management practices to mitigate these impacts.